Coca-Cola’s 20 Billion Dollar Brands & Future Growth

Simply

The Simply brand of juices is sold in the United States and Canada. The brand was releases in 2001 and reached billion dollar status by 2009. Simply’s best-selling juice is orange juice. The company’s orange juice is 100% juice and not-from-concentrate.

Despite the ‘Simply’ name, the process of manufacturing Simply orange juice is far from squeezing orange juice into a bottle.

First, different types of oranges are grown, harvested, and juiced. The orange juice is flash-pasteurized and the oxygen is removed from the juice to prevent spoiling. The juice is then categorized and separated by over 600 flavor variables. The juice is recombined in a precise formula, and natural concentrated orange flavor is added.

Why does Coca-Cola go through this intense process? To provide a standardized experience for consumers. In this way, Simply orange juice will always taste the same despite variances in weather which would otherwise change orange juice tastes.

The advanced process Coca-Cola uses gives it an advantage in juice. The company realized 7% volume growth in the Simply brand in fiscal 2014, far outpacing volume growth in total still (non-carbonated) beverages of 4% for the company.

Del Valle

Coca-Cola acquired Del Valle in 2007 for a total of $470 million ($380 million in cash and $90 million in assumed debt). At the time of acquisition, Del Valle had annual sales of around just under $500 million a year. By 2010, Coca-Cola grew Del Valle to reach $1 billion a year in annual sales.

The Del Valle brand is sold in the United States and Latin America. The two largest markets for the brand are Mexico and Brazil. Del Valle sells a variety of fruit juices.

Coca-Cola has been able to quickly grow revenue in the Del Valle brand by standardizing packaging and unifying the brand. The company’s standardized packaging helps consumers to quickly identify the Del Valle brand, despite several different flavors of juice. In addition, Coca-Cola’s bottling partners, strong distribution, and expertise in advertising have all played important parts in Del Valle’s success since the 2007 acquisition.

Powerade

Powerade was released in 1988 to compete with PepsiCo’s Gatorade brand. Since that time, the company has captured around 20% of the sports drink market. Gatorade still has a commanding market share of around 70%.

Powerade has grown through sponsorships of various sporting events. Powerade currently sponsors or has sponsored the following sports events: Australian Rugby League, Rugby Union Teams in Australia, Ireland, and New Zealand, NASCAR, the PGA Tour, the NCAA, several FIFA soccer league teams, and the U.S. Olympic team (excluding basketball and soccer), among other sporting events and teams.

The Powerade brand is currently managed by Coca-Cola’s Glaceau Vitamin Water team. Powerade is a global brand sold around the world.